David Hart says the Chancellor has failed to tackle uncertainty over funding

"It is absolutely crucial that it funds properly its own performance related pay system and provides the resources needed to deliver on workload reduction measures."

In last year's report, the Chancellor Gordon Brown announced windfall payments of up to �30,000 for every secondary school.

But this year, while the health service was promised an extra �1bn, education received a more modest �40m for improving adult education.

As well as not making any further commitments to schools, there was no reference to funding changes to the fees and loans system for students.

The Liberal Democrats attacked the pre-Budget report, claiming that "for education this is the Budget that never was" and it showed that for education "the cupboard was bare".

Estelle Morris listens to the Chancellor's spending plans

"The Chancellor cannot promise an extra penny to provide the 10,000 teachers our schools need now," said the Liberal Democrats' education spokesperson Phil Willis.

"He cannot promise an extra penny for the �1bn per year that our universities need now. He cannot promise an extra penny for the �0.5bn that further education colleges require to avoid a massive exodus of both students and staff."

Funding plans are already set for education for the next three years - and these include an ongoing increase.

"Our commitment means real increases in investment in our classrooms. Between 1997 and 2002 funding per pupil rose �540 per pupil in real terms and that is set to rise to �770 by 2003-04," said the Education Secretary Estelle Morris.